Login

3 Practical Solutions for Investors Over Age 50

Worried about the next financial crisis, but still need to retire securely? We have answers.

Click here to access
- FREE WEBINAR -

Asset protection

How This Great Race to Disaster Finally Ends

Share on Facebook Tweet on Twitter

Posted by Bill Bonner & Chris Hunter - Diary of a Rogue Economist

on Friday, 09 January 2015 09:19

Bill-BonnerThe Dow rose 323 points yesterday, or 1.8%. 

People come to think what they must think when they must think it. But what do they think now? Why do they think stocks are so valuable? 

Apparently, they believe that Janet Yellen, Mario Draghi and Haruhiko Kuroda – the powers that be – will continue to make stocks go up. 

The Fed has stopped active liquidity pumping. But it still has its hand on the pump handle, just in case. 

The European Central Bank is promising and preparing to pump as soon as it can get the Germans out of the way. And the Japanese – the world leaders in modern state finance – are pumping with both hands.

Gaming the System

Since 2009, the Fed has put more than $3.5 trillion to work on investors' behalf. 

This – along with the help of the ECB, the Bank of Japan, the Bank of England, the People's Bank of China, etc. – has helped lift stock markets by $18 trillion. 



Read more...

Banner

Asset protection

Richard Russell – Peace Of Mind, Gold & The Erratic Stock Market

Share on Facebook Tweet on Twitter

Posted by Richard Russell via King World News

on Wednesday, 07 January 2015 10:00

richardWith continued uncertainty in global markets, today the Godfather of newsletter writers, 90-year old Richard Russell, covers everything from peace of mind, to gold and the erratic world stock markets.  Russell also takes a close look at the importance of January in determining market direction for 2015.

....read it all HERE

 



Banner

Asset protection

Caution Caution Caution The Tide Has Gone Out

Share on Facebook Tweet on Twitter

Posted by John Rubino - DollarCollapse.com

on Friday, 02 January 2015 11:07

Scenes From a (Suddenly) Nude Beach

Warren Buffett's classic aphorism "You only see who's swimming naked when the tide goes out" is being tossed around more frequently these days, as the world gets yet another deflation scare. Zero Hedge just published a great piece on this topic, which should be read in its entirety. In the meantime here's a summary of the story with a few added bits.

Let's begin with the common sense premise that overly-easy money sends a false-positive signal to market participants, leading them to buy and build things that maybe shouldn't be bought or built. Then, when money goes back to a more reasonable price, the bad decisions (malinvestment in economist-speak) are revealed and financial turmoil ensues.

Today's situation has its roots in the 1980s, when the developed world got too lazy to live within its means and started borrowing way too much money. It then tried to inflate away its debts by creating a tidal wave of new currency and pushing interest rates down to unnaturally low levels. Flush with extra cash and cheap credit, consumers (especially in the US) bought huge amounts of imported junk. This in turn led China -- the main producer of said junk -- to go on an infrastructure/factory building spree of epic proportions, which shifted into hyper-drive after the 2008 crash. Chinese demand for industrial materials like copper, iron ore, and oil soared, pushing their prices far above historical averages.

This in turn led miners and drillers to mine and drill on an unprecedented scale, which caused the supply of industrial materials to surge. The flashiest case in point is the US shale oil boom, which sent domestic oil production back to levels not seen since Texas' blockbuster oil fields were young.

But it was all a money illusion, and every part of this process has recently hit a wall. Consumers refuse to go more deeply into debt to buy non-necessities, even when money is nearly free. Faced with lower demand and poor cash flow from the past decade's overbuilding, China has tapped the brakes on its infrastructure build-out. The US is trying to stop monetizing its debt, which has sent the dollar through the roof on foreign exchange markets, thus making life even harder for about half the world's population.

As a result of the above, demand for basic materials is returning to normal levels, which, in the face of inflated supply, is tanking prices across the commodity complex.

In other words the tide has gone out, leaving a whole beach full of naked (and unfortunately not very attractive) bodies. Specifically:

Shale oil junk bonds. Back when oil was over $100 a barrel, everybody wanted to lend to drillers, especially in the exotic (and as it turns out fatally-flawed) shale oil sector. $170 billion of energy-related junk bonds are now outstanding, and they are tanking along with the price of oil.

36250 a



Read more...

Banner

Asset protection

Really, Greece Again?

Share on Facebook Tweet on Twitter

Posted by John Rubino - DollarCollapse.com

on Monday, 22 December 2014 07:50

UnknownThe Greek financial/political crisis is becoming an annual event. For a sense of just how long this unfortunate little country has been struggling to survive under the relative sound money regime of the eurozone, here's a Greek Crisis Timeline that CNN published in 2011. Even back then the pattern of near-collapse followed by temporary respite had been repeating for seven years.

The most recent lull seemed longer than usual, so long in fact that many people probably assumed that Greece had been "fixed" and was now a more-or-less fully-functioning member of the eurozone, ready to settle back into its enviable lifestyle of hosting tourists, drinking ouzo and avoiding taxes.



Read more...

Banner

Asset protection

Outside the Box: The Burning Questions For 2015

Share on Facebook Tweet on Twitter

Posted by John Mauldin - Outside the Box

on Friday, 19 December 2014 07:20

Screen Shot 2014-12-19 at 6.08.13 AMLouis Gave is one of my favorite investment and economic thinkers, besides being a good friend and an all-around fun guy. When he and his father Charles and the well-known European journalist Anatole Kaletsky decided to form Gavekal some 15 years ago, Louis moved to Hong Kong, as they felt that Asia and especially China would be a part of the world they would have to understand. Since then Gavekal has expanded its research offices all over the world. The Gavekal team’s various research arms produce an astounding amount of work on an incredibly wide range of topics, but somehow Louis always seems to be on top of all of it.

Longtime readers know that I often republish a piece by someone in their firm (typically Charles or Louis). I have to be somewhat judicious, as their research is actually quite expensive, but they kindly give me permission to share it from time to time.

This week, for your Outside the Box reading, I bring you one of the more thought-provoking pieces I’ve read from Louis in some time. In Thoughts from the Frontline I have been looking at world problems we need to focus on as we enter 2015. Today, Louis also gives us a piece along these lines, called “The Burning Questions for 2015,” in which he thinks about a “Chinese Marshall Plan” (and what a stronger US dollar might do to China), Abenomics as a “sideshow,” US capital misallocation, and whether or not we should even care about Europe. I think you will find the piece well worth your time.

Think about this part of his conclusion as you read:



Read more...

Banner

<< Start < Prev 71 72 73 74 75 76 77 78 79 80 Next > End >> Page 77 of 87

Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Josef Ozzie Jurock Greg Weldon Ryan Irvine